After nearly two years of stability, hard disk drive (HDD) prices are once again on the rise, driven by renewed demand and market dynamics in China. According to a report from Digitimes Asia, citing Nikkei, HDD contract prices increased by approximately 4% quarter over quarter in Q4 2025. This marks the largest quarterly increase in eight quarters, and analysts expect continued pricing pressure into the near future.

Demand Driven by China’s PC Market

The surge in HDD prices is largely attributed to China’s domestic PC market. Changes in government procurement policies now favor PCs built with locally produced processors and operating systems, prompting manufacturers to ramp up production. As local PC assembly grows, so does the demand for storage, with HDDs playing a key role.

HDDs vs. SSDs: Data Retention Concerns

Another significant factor influencing the market is long-term data retention concerns with solid-state drives (SSDs). While SSDs rely on NAND flash memory for storage, prolonged data retention can sometimes lead to data degradation, commonly known as “bit rot.” For certain applications that require long-term, reliable storage, buyers are increasingly turning back to traditional HDDs, reversing what had appeared to be a steady trend toward all-flash storage solutions.

Outlook for the HDD Market

Suppliers expect the combination of China’s domestic production policies and ongoing concerns over SSD longevity to keep HDD demand steady, which may further impact prices in 2026. Analysts suggest that enterprises and consumers evaluating storage solutions should monitor these trends closely, especially for data-heavy applications requiring long-term archival.

The renewed attention on HDDs underscores the evolving balance between flash-based storage and magnetic hard drives, illustrating how market forces and technical considerations can influence even mature technology sectors.